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Study of Conventional Health Bank in Indonesia from 2012 to 2017
Yusnita Octafilia Management Department Pelita Indonesia School of Business Pekanbaru, Indonesia yoctafilia.pelitaindonesia@yahoo.com Evelyn Wijaya Management Department Pelita Indonesia School of Business Pekanbaru, Indonesia evelynwijaya53@gmail.com

Pelita Indonesia School of Business


Abstract

Health bank level method that had been changed three times, from CAMEL, CAMELS to RGEC is Bank Indonesia-s strategy in order to protect banking sector which is susceptive to economy crisis. It is attractive because RGEC method is just implemented in Indonesia-s banking sector and it known from international researches that are still using CAMELS such as Vietnam, South Africa, India and Bangladesh. Then, the aim of this study is to analyze conventional health bank in Indonesia by combining CAMELS and RGEC methods; assets, rentability, liquidity, solvability and sensitivity of market risk. This study-s object is conventional bank in Indonesia with 50 banks as sample and period of study is from 2012 to 2017. The result of this study shows that asset ratio is represented by CAR and NIM are mostly on 1 and 2 composite level, rentability ratio is represented by ROA and NIM are on 1 and 3 composite level while, LDR and NPL are represented rentability ratio are on 2 and 3 composite level and LDR and NPL are represented liquidity ratio are mostly on composite level 1. Then, solvability ratio is represented by BOPO and sensitivity of market risk ratio is represented by IRR are on composite level 1 commonly. It means that conventional health bank in Indonesia from 2012 to 2017 is very healthy or adequate. From the result of this study is expected to be able to increase society-s trust to banking sector then it can increase people investment in bank.

Keywords: bank health, conventional, camels, rgec

Topic: Finance and Accounting

Link: https://ifory.id/abstract/bHMnf7ZCBaNk

Conference: Annual International Conference on Management Research (AICMAR 2019)

Plain Format | Corresponding Author (Yusnita Octafilia)

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